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<blockquote data-quote="dmac1" data-source="post: 4581516" data-attributes="member: 60252"><p>My point is the the contractors who hire drivers could be considered as employees possibly under California's efforts to restrict the abuse of the law. Fedex may need to prove the contractor is independent, with the state assuming they are contractors unless fedex proves otherwise. The long term nature of the contract, the fact that work is done in fedex terminals, with fedex setting numerous standards are all in favor of employee status. In the past, it has always been the other way around, with the burden of proof placed on the 'contractor' to prove employee status. Ownership of the vehicles is completely irrelevant, but an employee would need to be reimbursed for business use, which is what fedex used to do with the vehicle allowance, mileage pay. There is NO legal issue with employees using personally owned vehicles in relation to their status as an employee. The pay contractors receive could be looked at like it is a dept budget, with the contractor as a manager of a dision. It isn't a big stretch considering all the requirements on the work structure fedex puts on contractors. If fedex ever really wants to be out from under a cloud over status, they need to just pay a per package rate, maybe with zones based on distance from terminal, and stop all the demands they place on contractors. Contractors now are more like franchisees than truly independent contractors.</p></blockquote><p></p>
[QUOTE="dmac1, post: 4581516, member: 60252"] My point is the the contractors who hire drivers could be considered as employees possibly under California's efforts to restrict the abuse of the law. Fedex may need to prove the contractor is independent, with the state assuming they are contractors unless fedex proves otherwise. The long term nature of the contract, the fact that work is done in fedex terminals, with fedex setting numerous standards are all in favor of employee status. In the past, it has always been the other way around, with the burden of proof placed on the 'contractor' to prove employee status. Ownership of the vehicles is completely irrelevant, but an employee would need to be reimbursed for business use, which is what fedex used to do with the vehicle allowance, mileage pay. There is NO legal issue with employees using personally owned vehicles in relation to their status as an employee. The pay contractors receive could be looked at like it is a dept budget, with the contractor as a manager of a dision. It isn't a big stretch considering all the requirements on the work structure fedex puts on contractors. If fedex ever really wants to be out from under a cloud over status, they need to just pay a per package rate, maybe with zones based on distance from terminal, and stop all the demands they place on contractors. Contractors now are more like franchisees than truly independent contractors. [/QUOTE]
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